PPI Reclaim IVA issue

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
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hilarioushilarious Forumite
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1) I have been helping an aunt to claim PPI and its been a success however Barclays decided to payout to her IVA company. The cheque was sent to her address but the IVA company was rather named. The IVA payments are still in force.

Is she not entitled to some or all of of the money as the 8% interest is in her regard as she was deprived of that?

She is happy to use the money to continue her monthly payments but I want to know the legality of this arrangement.

* The IVA company says 'any windfall is passed on to the creditors' the PPI reclaim is considered a windfall.

Please Advise or point me in the right direction.

Replies

  • dunstonhdunstonh Forumite
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    however Barclays decided to payout to her IVA company.

    That is the normal outcome.
    Is she not entitled to some or all of of the money as the 8% interest is in her regard as she was deprived of that?

    No. It belongs first to those that have had debts written off (or arrears or defaulted where applicable).

    Remember that she is in an IVA. So, she effectively hasnt paid some or all the PPI premium. She defaulted on it. So, why should she get a refund when she hasnt paid it?
  • jamesdjamesd Forumite
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    That's happening as it should. She's insolvent (an IVA is a form of insolvency) and insolvency practitioner will pass it on to her creditors, who are the ones entitled to the money. If she hadn't been paying the PPI it would have reduced the amount owed so either way the creditors would be in an improved position.
  • I wont do Barclays then . which creditors were you succesfull with then ?
    im in a IVA too 3years now and my creditors are
    Capital One
    Barclays and Beneficial HSBNfor Credit Cards.
    my Loans were Nationwide HFC and Marbles.
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